As of January 1, 2009, Tokyo Corporation Has a Deficit

As of January 1, 2009, Tokyo Corporation has a deficit in accumulated E & P of $75,000.For tax year 2009, current E & P (all of which accrued ratably) is $40,000 (prior to any distribution) .On July 1, 2009, Tokyo Corporation distributes $60,000 to its sole, noncorporate shareholder.The amount of the distribution that is a dividend is:

A) $0.
B) $40,000.
C) $60,000.
D) $75,000.
E) None of the above.